Best and Cheapest Car Insurance in Philadelphia, PA For February, 2024

Based on my research, I’ve found that overall, Travelers offers the cheapest car insurance in Philadelphia, PA.

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Updated: 12 January 2024
Written by
Doug Schaffer
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If you live in Philadelphia, you’re continually looking for the best value at the best price, including auto insurance. You’ve come to the right place. Based on extensive research, I’ve found that Travelers has the cheapest car insurance in Philadelphia.

Finding the right car insurance at the right price is vital to your financial health not only because you pay a lot each month for auto insurance but also because without the right amount of car insurance coverage, you’re at significant risk financially if you’re involved in an accident, and someone is injured or dies.

During my 15 years as a licensed insurance agent and 35+ years as a buyer of auto insurance, I’m very familiar with all of the companies reviewed and have been insured by several. They are all quality carriers, but they excel in different demographics.

Cheapest And Best Car Insurance Companies In Philadelphia, PA 2024

Cheapest Car Insurance, Philadelphia 2024

Compare The Cheapest Auto Insurance Companies In Philadelphia

Overall Rating Cheapest For A.M. Best Rating J.D. Power Rating Online Experience Get A Quote
Travelers
4.9

Cheapest Overall

A+

822

9.5

Instant Quote
State Farm
4.8

Driving Violations

A++

843

9.7

Instant Quote
Travelers
4.8

Full Coverage

A++

822

9.5

Instant Quote
Travelers
4.9

Minimum Coverage

A+

822

9.5

Instant Quote
Nationwide
4.7

Teens

A+

820

9.6

Instant Quote
Travelers
4.9

Seniors

A+

822

9.5

Instant Quote
Scroll to see comparisons

Our Methodology

My approach was comprehensive and took into account various aspects, including customer service ratings, product options, pricing, and the online user experience. Additionally, my extensive knowledge gained from purchasing car insurance, holding a license as an agent for over 15 years, and interacting with agents from various auto insurance companies has given me valuable insights into the strengths and weaknesses of these insurers.

55

Quotes Analyzed

15+

Years Of Industry Experience

18

Brands Reviewed

28+

Research Hours

Reviews Of The Best Cheap Car Insurance Companies In Philadelphia


Cheapest Overall

Overall Rating
4.9

Key Statistics

10/10 Affordability
9/10 Customer Reviews
9/10 Claim payouts
9/10 Coverage Level

Why We Like Them

Travelers not only offers the cheapest car insurance rates in Philadelphia; it is also one of the top insurers when it comes to customer service. It has an average satisfaction reputation but is excellent for complaints, meaning it receives significantly few customer service complaints.

Insurers are not transparent about how they calculate premiums and why one driver pays more than another. But, a poor driving record or credit score and the driver’s age, among other factors, can influence rates. Travelers takes a fair approach, not heavily weighing any factor against another, resulting in very competitive rates for all drivers.

Benefits & Drawbacks

Benefits
  • Cheapest rates for most drivers in Philadelphia
  • Unique discounts include new vehicle, loyalty, homeowners, and hybrid vehicle
  • Add-on coverages such as roadside assistance, accident forgiveness, new car replacement, and gap insurance
Drawbacks
  • No deductible modification or better car replacement
  • No rideshare insurance available in Pennsylvania

Other Considerations

Finding cheap car insurance is very important to drivers in Philadelphia. Residents pay almost twice as much as the state average, with Philly rates being the most expensive in Pennsylvania. Philly drivers also pay more than twice the national average.

Rates For The Cheapest Car Insurance In Philadelphia, PA

Insurance company Monthly rate for full coverage
Travelers $89
Nationwide $107
Auto-Owners $111
State Farm $113
Erie $117

Cheapest For Driving Violations

Overall Rating
4.8

Key Statistics

9/10 Affordability
9/10 Customer Reviews
9/10 Claim payouts
7/10 Coverage Level

Why We Like Them

With the heavy traffic in Philadelphia, driving violations and accidents occur frequently. Unfortunately, insurers typically raise your rates after you’ve received a ticket for a moving violation, a DUI, or an at-fault accident.

However, State Farm has the cheapest rates in Philadelphia for drivers with violations and at-fault accidents. Its car insurance policies are sold by the largest sales force of any insurer in America, all of whom have offices in the same neighborhoods as their insured.

Benefits & Drawbacks

Benefits
  • Good selection of discounts, including student and good driver discounts
  • Provides rideshare insurance
Drawbacks
  • No accident forgiveness, new car replacement, gap insurance, deductible modification, or better car replacement
  • No unique coverages are available, like OEM replacement parts

Other Considerations

Philadelphia has the highest accident rate of any city in Pennsylvania, and if you’ve ever driven there, you know why. Alcohol and speed are factors in many crashes in the City of Brotherly Love, which drives rates higher for everyone, especially the driver guilty of the infraction. Finding a company that is less punitive is a factor in many people’s car insurance purchasing decisions.

Rates For The Cheapest Car Insurance In Philadelphia After A Violation

Insurance company Monthly rate after a DUI
State Farm $124
Allstate $125
Travelers $131
Auto-Owners $280
Erie $201

Best For Full Coverage

Overall Rating
4.9

Key Statistics

10/10 Affordability
9/10 Customer Reviews
9/10 Claim payouts
10/10 Coverage Level

Why We Like Them

Although it may seem like a good idea to purchase only the minimum required car insurance coverage in Philadelphia, it is highly recommended for drivers who own newer cars with a higher value than their annual premium to opt for full coverage car insurance instead. Travelers offers the most affordable full coverage option in Philadelphia.

To help you keep your full coverage car insurance premium affordable, Travelers offers car insurance discounts such as bundling, multi-car, good student, safe driving, and paperless communications. Hybrid drivers may also qualify for the alternative energy discount.

Benefits & Drawbacks

Benefits
  • Cheapest rates for full coverage in Philadelphia
  • Has fewer complaints than the national average with the NAIC
Drawbacks
  • No mobile app
  • Can’t purchase coverage online

Other Considerations

It’s important to have affordable full coverage car insurance in Philadelphia to avoid facing high expenses for repairs and legal liabilities that could negatively impact your finances for a long time. Before settling for the minimum required coverage in Philadelphia, obtain quotes from multiple insurance providers for full coverage. You may be pleasantly surprised to find that the price difference is minimal.

Rates For The Cheapest Monthly Full Coverage Auto Insurance In Philadelphia, PA

Insurance company Monthly rate for full coverage
Travelers $89
Nationwide $106
Auto-Owners $108
State Farm $111
Erie $117

Cheapest Minimum Coverage

Overall Rating
4.9

Key Statistics

10/10 Affordability
9/10 Customer Reviews
9/10 Claim payouts
10/10 Coverage Level

Why We Like Them

Travelers not only wins the first prize for having the cheapest full coverage car insurance in Philadelphia, but it also comes in as the winner for having the cheapest minimum coverage.

There are instances where buying the minimum coverage (liability-only) required by Pennsylvania law ($15,000 for injury/death to one person, $30,000 for injury/death to more than one person, and $5,000) to damage to property) is appropriate. For instance, if you own an older model car outright with no lienholder and the vehicle is valued at less than what a full coverage premium would be, carrying minimum coverage may be adequate.

Benefits & Drawbacks

Benefits
  • Cheapest rates for full coverage in Philadelphia
  • Has fewer complaints than the national average with the NAIC
Drawbacks
  • No mobile app
  • Can’t purchase coverage online

Other Considerations

Buying the cheapest liability-only insurance in Philadelphia may be warranted if you have an older car with high mileage and a low resale value. An agent or company offering such low rates can be tempting if you have a newer model car, but make sure you’re not underinsured and leave yourself vulnerable financially.

Rates For The Cheapest Minimum Auto Insurance In Philadelphia

Auto Insurance company Monthly rate for minimum coverage car insurance
Travelers $41
Erie $47
Westfield $49
State Farm $52
Auto-Owners $54

Cheapest For Teens

Overall Rating
4.7

Key Statistics

10/10 Affordability
8/10 Customer Reviews
8/10 Claim payouts
9/10 Coverage Level

Why We Like Them

Nationwide car insurance is the cheapest for teens added to their parent’s policy. Opting for a family policy rather than buying a separate one is a more cost-effective choice for teenagers.

For example, a teen driver in Philadelphia who buys an individual plan will pay $10,149 per year with Nationwide, a price that very few teens can afford. However, adding them to their parent’s policy with Nationwide drops that premium to $2,750 annually.

Benefits & Drawbacks

Benefits
  • Offers many of the common discounts, like bundling, multi-car, good student, safe driver, anti-theft, paperless, and defensive driving
  • Offers an additional discount if you choose automatic payments
  • Offers mechanical breakdown assistance and identity theft coverage as add-ons
Drawbacks
  • Doesn’t offer new car or better replacement coverage
  • Doesn’t offer discounts for paying in full or having airbags installed

Other Considerations

Because of the high price of individual car insurance for teens in Philly, it’s recommended that teens and their parents compare rates from different carriers. Be sure to compare individual rates versus adding a teen to a parent’s policy. It can save you thousands of dollars per year.

Rates For The Cheapest Car Insurance For Teens In Philadelphia

Auto Insurance company Family Plan Annual Premium Individual Plan Annual Premium
Nationwide $2,689 $10,567
Travelers $3,019 $13,745
Auto Owners $3,478 $14,663
State Farm $3,948 $8,926
Allstate $4,044 $16,942

Cheapest For Seniors

Overall Rating
4.9

Key Statistics

10/10 Affordability
9/10 Customer Reviews
9/10 Claim payouts
10/10 Coverage Level

Why We Like Them

As drivers age, their car insurance increases proportionately. With the high cost of living in Philadelphia and possibly being on a fixed income, seniors are continually on the lookout for low rates and are open to switching carriers if the opportunity to save money presents itself.

Once again, Travelers proves to be the cheapest in providing affordable coverage to this growing demographic. Over 10,000 Baby Boomers turn 65 every day in America, and they are fighting inflation and learning how to live off their retirement income. Travelers has shown a commitment to making car insurance affordable for these older drivers.

Benefits & Drawbacks

Benefits
  • Cheapest rates for seniors
  • Good selection of discounts
  • Numerous coverage options and add-ons
Drawbacks
  • Rates will increase as drivers age into their 70s and 80s

Other Considerations

Seniors who don’t mind shopping around for car insurance every year can often find lower premiums. Since many seniors in Philadelphia are homeowners, they should be sure to bundle their car and home insurance to get a discount on the auto policy.

Rates For The Cheapest Car Insurance In Philadelphia For Seniors

Auto Insurance company Monthly rate for full coverage for seniors
Travelers $87
Nationwide $92
State Farm $101
Auto Owners $106
Allstate $112

Average Cost Of Auto Insurance In Philadelphia

This is the average cost of car insurance in Philadelphia across several categories:

Average Cost In Philadelphia – By Age

Age group Average 6-month car insurance premiums for full coverage
Teens $2,730
20s $1,692
30s $1,176
40s $1,069
50s $966
60s $906
70s $1,014

Average Cost In Philadelphia – By Marital status

Marital Status Average annual rate
Single $1,399
Married $1,346
Divorced $1,403
Widowed $1,372

Average Cost In Philadelphia – By Gender

Driver’s gender Annual cost
Female $1,638
Male $1,638
Difference $0

Average Cost In Philadelphia – By Accident And Violation History

Violation Average yearly rate
DWI/DUI $2,814
Speeding $2,018
At-fault accident $2,157

Average Cost In Philadelphia – By Credit Tier

Credit Tier Average annual rate
Very Poor (300-579) $2,596
Fair (580-669) $2,171
Good (670-739) $1,800
Very Good (740-799) $1,477
Exceptional (800-850) $1,217

Average Cost In Philadelphia – By Zip Code

Zip code Monthly cost
19118 $2,466
19128 $2,545
19113 $2,565
19127 $2,614
19154 $2,755

Minimum Car Insurance Requirements In Philadelphia

These are the minimum liability insurance requirements in Philadelphia:

  • $15,000 for injury/death to one person
  • $30,000 for injury/death to more than one person
  • $5,000 for damage to property

Liability coverage only compensates a person other than the policyholder for personal or property damage. Full coverage also covers the policyholder.

How To Buy Car Insurance In Philadelphia

It’s worth noting that each car insurance company offers auto insurance policies that can meet your needs. However, depending on your situation, one company may be more beneficial than others. For instance, if you’re 65, Travelers’ policy might be the best for you because of its low rates for seniors. Alternatively, if you’re 17, Nationwide might be the better option for your auto insurance due to its focus on a younger demographic.

To determine the best and cheapest car insurance company for you, ask yourself these five questions:

  1. What are the financial ratings of the company?
  2. Does the company offer the coverage I need?
  3. Do I prefer to receive assistance from a local agent or search for policies online?
  4. Are the company’s rates competitive for my age group?
  5. Are most online reviews of the company positive?

Remember, the company and coverage that work best for you now may not be as competitive in the future. Therefore, it’s important to compare rates and coverage every six or twelve months when your policy renews.

Factors That Impact The Cost Of Your Car Insurance Policy In Philadelphia

Car insurance rates in Philadelphia, like in all states, are influenced by various factors such as:

  • Age: car insurance rates can vary by up to 367% based on age.
  • Car make and model: some vehicles are cheaper to insure than others. For example, a truck is 3% cheaper to insure than a sedan, on average.
  • High-risk violations: traffic violations and car accidents can increase the cost of auto insurance from 20% to 200%.
  • Yearly mileage: your annual mileage is a factor because the more you’re on the road, the more likely you’ll be in an accident.
  • Zip code: the zip code you live in can cause your rates to fluctuate.
  • Marital status: married drivers have lower car insurance premiums because they are statistically the least risky drivers to insure.

Car Insurance Discounts In Philadelphia

Almost all auto insurance companies in Philadelphia offer money-saving discounts that you might qualify for, including:

  • Having safety equipment, like airbags, anti-lock brakes, daytime running lights, or an anti-theft system
  • Owning a vehicle that is three model years old or newer
  • Driving for five years with no accidents
  • Using seat belts
  • Completing a defensive driving course
  • Having good grades
  • Insuring more than one vehicle
  • Bundling homeowners, renters, condo, life insurance, or mobile home insurance with a car insurance policy
  • Being active-duty or retired military

Philadelphia Car Insurance Laws To Know

The auto insurance laws in Philadelphia are simple and direct: every driver in Philadelphia must buy at least the minimum amount of auto insurance required by the state. Drivers must also carry proof of coverage while driving.

In The News

According to Billy Penn at WHYY, Philadelphians are seeking help with bullet damage to cars as shootings continue (October 2021). He writes, “In a city where more than a quarter of the residents live below the poverty rate and many more live paycheck to paycheck, this can cause major financial strain.”

FAQs

Why is Pennsylvania car insurance so high?

Several factors drive up Pennsylvania car insurance rates, including the number of uninsured drivers on the road and the weather risks drivers face, such as snow, ice, and intense rain storms.

How much is car insurance in Pennsylvania a month?

The average cost of Pennsylvania car insurance is $1,672 per year.

Which company offers the cheapest car insurance?

In Philadelphia, Travelers offers the overall cheapest car insurance.

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